Commentary

D7.485 Intra-group transfers and demutualisations

Corporate tax
Corporate tax | Commentary

D7.485 Intra-group transfers and demutualisations

Corporate tax | Commentary

D7.485 Intra-group transfers and demutualisations

The rules in this division apply for accounting periods beginning on or after 1 January 2013. For accounting periods beginning before 1 January 2013 see Division D7.5.

The general principle underpinning the rules relating to transfers between companies within the same group (extended in this context to include demutualisations although such transactions are becoming far less commonplace) is that the transferee should stand wholly in the place of the transferor. As such neither a taxable profit nor a relievable loss should arise on the transfer. As a corollary, the intra-group rules do not apply if the transferee is not within the charge to corporation tax since this would otherwise create an asymmetry.

An intra-group transfer is one between companies that are members of the same group and with a transferee within the charge to corporation tax1. In determining whether parties to an insurance business transfer are members of the same group, the definition in TCGA 1992, s 170(2)–(11) is to apply2.

A transfer of business is connected with a demutualisation in one of two

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